Moody's upgrades Buruj Insurance's outlook to positive

Moody's Investors Service on Thursday revised the outlook for Buruj Cooperative Insurance Co. to positive from stable and affirmed its Baa2 insurance financial strength rating (IFSR). 

The change in outlook reflects the insurer's continued strong profitability, improving capital adequacy and improved market position, it said in a statement.

Meanwhile, the affirmation of IFSR was as a result of its strong asset quality, majority of investments held as cash, bank deposits and investment grade Islamic sukuk, and improving sophistication in reserving with actuarial-led reserve setting and monitoring.

The ratings agency said it expects to resolve the positive outlook for the insurer in the next 12 months.